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Kuehne + Nagel posts 0.3pc slip in quarterly air cargo to 304,000 tons

SWISS forwarding giant Kuehne + Nagel posted a 0.3 per cent decline in air freight volumes to 304,000 tons during the first quarter of the year.

Last year Kuehne + Nagel saw air cargo tonnage grow ahead of the market, and still managed to stay ahead as the overall market slipped five per cent during the quarter.

One reason for the decline on the previous year was the industrial action at US west coast ports which pushed cargo to air freight and provided a one-off boost in 2015.

However, the forwarder also reported tough market conditions, despite some areas of growth.

"In the global air freight market no significant positive growth stimuli were recorded; as a result, volumes declined towards the end of the quarter," said the statement accompanying the results.

"In the previous year's period, volumes were additionally increased by a temporary shift of goods from sea to air freight due to the harbour strike on the US west coast.

"Kuehne + Nagel counteracted the unfavourable volume development in North and South America with strong export business in Asia, the Middle East and Africa, and thus, managed to keep overall tonnage stable at the previous year's level."

With volumes down on last year, it comes as no surprise that air freight revenues were also behind the 2015 levels, declining by 5.5 per cent to CHF944 million (US$981.6 million).

But while revenues and volumes were down on a year earlier, Kuehne + Nagel did manage to improve air freight profitability.

Gross profits climbed by 6.3 per cent year on year to CHF235 million and earnings before interest and tax (EBIT) jumped 7.4 per cent to CHF73 million.